Understanding property title deeds: What you need to know as a homeowner or homebuyer.
Category Advice
The title deed is the legal document that proves that an owner, or the bank through whom the home is financed, owns the home. When the property is sold, the title deed is at the centre of that process. This is why it is essential that the document is kept safe and out of harm's way.
As a property owner, in addition to recording all the relevant information about your property, your title deed is important because it is evidence that you are the legal owner.
- A physical description (size, including the buildings, boundaries, any sub-divisions, or consolidations, and exact - surveyed - geographical position)
- Whether the structures are freestanding, semi-detached, and/or an apartment or communal type building.
- If the property is freehold or sectional title.
- Owner's information recording the personal details of the legal owner(s), including full names and identity numbers.
- Historical information, including all dates when the property was transferred, all the previous registered owners and what they paid for the property, and if/when the property was sub-divided.
- Any special conditions that apply to properties.
A property title deed will also record anything that could restrict its sale. For example, if it is bonded to a bank, before a property changes ownership, that bond must be paid off. Each time a property changes hands, information is added to the title deed, which is stamped with an official Deeds Registry Office seal. This confirms the date on which the property was registered in the name of the new owner.
For those who are paying off a home loan, the bank will keep the title deed until the loan is paid off in full and the owner requests to close the loan account. It is important to note that, even after paying off the loan in full, the loan account will stay open unless you request to close it. If you sell the property before you have paid off the bond, that loan must be settled before the bank releases the title deed to the transferring attorney.
On the other hand, if you have paid cash for the property, once the property is registered in your name at the Deeds Office, the conveyancing attorney will send the title deed to you. Similarly, when you have paid off your home loan and you request to close the loan account, your bank will then send the title deed to you.
If you happen to lose your title deed owing to a burglary, or if your house burns down or if your home is washed away in a flood, you can apply to your local Deeds Office and will have to pay a fee before being issued with a certified copy of your title deed.
Members of the public can also request information about a property through the Deeds Office but will have to have all the information about the property, including the owner's full name, identity number and/or date of birth. You will also need some technical information about the property - not just the street address - the erf number, township or farm name and number. You will have to make a formal application - either at the office or online - and complete the relevant form and will have to pay a fee.
Those who have any further questions about how the title deed works are encouraged to speak to a local agent for further information. If you are ever unsure about anything relating to the ownership of your home, get some free advice from a local real estate expert.
Extract From Property 24
Author: Extract from Property 24
